Since last year, over half a million people have lost nearly $1 billion to cryptocurrency fraud and criminality. This statistic has caused a <a href="https://oversight.house.gov/news/press-releases/chairman-krishnamoorthi-requests-information-from-federal-agencies-and-crypto" target="_blank" rel="nofollow noopener">US House of Representatives committee</a> to look into the operations of significant exchanges, including Coinbase, FTX, and Kraken. On Tuesday, Rep. Raja Krishnamoorthi, the chair of a committee overseeing economic and consumer affairs, <a href="https://oversight.house.gov/sites/democrats.oversight.house.gov/files/2022-08-30.RK%20to%20Lyu-KuCoin%20re%20Crypto%20Fraud.pdf" target="_blank" rel="nofollow noopener">issued letters</a> to five crypto exchanges and four federal agencies, demanding details on the systems they have in place to combat fraud and scams.
<h2>Five Crypto Exchanges Get Inquiries</h2>
US Congressman Krishnamoorthi sent letters to the US Treasury, Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (<a href="https://www.cryptoknowmics.com/news/cftc-files-charges-against-12-million-bitcoin-ponzi-scheme/" target="_blank" rel="noopener">CFTC</a>), Federal Trade Commission, Finance.US, <a href="https://www.cryptoknowmics.com/news/coinbase-derivatives-exchange-to-add-nano-ether-futures-contract/" target="_blank" rel="noopener">Coinbase</a>, FTX, Kraken, and KuCoin.

The letters request responses from the federal authorities and cryptocurrency exchanges by September 12 with details of what they are doing to protect customers. According to the committee, these responses might help create new laws. The letters specifically demand that the exchanges submit records demonstrating attempts to address cryptocurrency fraud and scams going back as far as January 1, 2009.

It highlights debates on "whether to implement more rigorous policies" and attempts to "detect, investigate, and remove or flag possibly fraudulent digital assets or accounts."
<h2>FBI Warns Against Crypto Fraud</h2>
The Federal Bureau of Investigation (<a href="https://www.cryptoknowmics.com/news/fbi-warns-the-public-about-fake-cryptocurrency-apps/" target="_blank" rel="noopener">FBI</a>) recently warned about the rising incidents of fraudsters preying on cryptocurrency investors' enthusiasm. According to data from Immunefi, breaches against decentralized finance (DeFi) protocols cost over $1.2 billion in the first quarter, an increase of over eight times over the same period last year.

Democrats expressly asked cryptocurrency miners for information in July. Sen. Elizabeth Warren and US Rep. Rashida Tlaib were two of six legislators that demanded miners report their emissions and energy use after coming to "disturbing" conclusions about the environmental impact of <a href="https://www.cryptoknowmics.com/news/japans-largest-online-broker-to-shut-crypto-mining-in-russia/" target="_blank" rel="noopener">crypto mining</a>.

US Congressman Seeks Info on Efforts to Combat Crypto Fraud, Scams

US Rep. Raja Krishnamoorthi issued letters to 5 crypto exchanges and 4 federal agencies, demanding details on their abilities to combat fraud and scams.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

US Congressman Seeks Info on Efforts to Combat Crypto Fraud, Scams

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